Game On For Microsoft and Activision Blizzard
By Greg Kahn
Emerging Tech Exchange
Founder & CEO
Published on July 18, 2023
It took a year-and-a-half, but Microsoft beat the FTC’s attempts to block its $69 billion acquisition of Activision Blizzard, the gaming industry's largest deal ever, last week.
I spoke to The Drum’s Kendra Clark about the deal and the implications for the gaming industry, as well as what it means for Microsoft’s own attempts to be a stronger challenger — and perhaps partner — to the industry’s leaders, Sony and Nintendo.
Meanwhile, Sony has agreed to a 10-year deal for its popular “Call of Duty” title with Microsoft to keep the franchise on PlayStation following the completion of Activision Blizzard purchase. It seems like all of Microsoft’s plans are falling into place.
Here’s an excerpt from The Drum:
The crux of the case concerned Microsoft’s power in the market in comparison to its competitors – Sony and Nintendo chief among them. An acquisition of Activision would give Microsoft access to the game-maker’s vast content library and intellectual property. And the FTC argued that Microsoft would likely make the uber-popular Activision game Call of Duty exclusive to its Xbox console, either barring it from Sony’s PlayStation altogether or license out a lower quality version to Sony.
Licensing is no small matter in gaming. “If there’s one thing that defines [gaming] success in 2023, it’s licensing and intellectual property, as opposed to having a best-selling console system,” says Greg Kahn, the chief executive officer at GK Digital Ventures and an expert in media, entertainment and advertising. “The former is wide open in this increasingly decentralized world; the latter is limited by the constraints and trends associated with a particular hardware product.”